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2007 Automotive Sustainability Report

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2007 Automotive Sustainability Report THE UK AUTOMOTIVE SECTOR SUSTAINABILITY REPORT PRODUCTION , USE AND DISPOSAL EIGHTH INDUSTRY REPORT www.smmt.co.uk CONTENTS 1.0 Signatories and the reporting 2.0 Executive summary 7 3.0 Life cycle overview 13 year 3 4.0 Vehicle production and 5.0 Vehicle use 23 6.0 Vehicle disposal 33 distribution 15 4.1 UK production and registration 16 5.1 Introduction 24 6.1 End of life vehicles 34 4.2 Economics and investment 17 5.2 CO2 25 4.3 Production inputs 18 5.3 Alternative fuels 28 4.4 Material outputs 19 5.4 Air quality 29 4.5 People and skills resource 20 5.5 Safety 32 4.6 Supply chain 22 7.0 Stakeholder engagement 37 8.0 Integrated approach 39 Appendices 44 References 47 Contact information 48 2 1.0 Signatories and the reporting year 3 1.0 Signatories and the reporting year This is the eighth annual report produced by the SMMT on the sustainability of the automotive sector. Now is a very pertinent time to look at the ongoing sustainability of the UK vehicle industry. 2006 was a great year of change in the UK automotive sector. Plant closures in Coventry and model changes elsewhere affected production vol- umes. However a successful UK automotive sector is still extremely viable. A rapidly evolving, environmentally focused industry needs to deliver all the elements of sustainability to ensure long-term viability. This report demonstrates the challenges we face in the UK of achieving this and is a reflection of the pressures of adapting procedures, methods, products and disposal of vehicles. We have success in some areas, but not in all. I hope you enjoy the new report and we look forward to SMMT coverage of these issues in future years. Christopher MacGowan Chief Executive, SMMT 4 Signatories to this report are: Brands: Bentley Motors Bentley BMW Group BMW, MINI *Daimler Chrysler Mercedes Benz, Smart, Chrysler Ford Motor Company Ford engines, Ford Transit Vans GKN Driveline Limited GKN Honda UK Manufacturing Limited Honda IBC Vehicles Limited Vauxhall, Nissan and Renault Vans Jaguar Cars Limited Jaguar Land Rover Land Rover LDV LDV Vans Nissan Motor Manufacturing (UK) Limited and Nissan Nissan Technology Centre Group *Perkins Engines Perkins PSA Peugeot Citroën Automobiles UK Limited Peugeot, Citroen Toyota (GB) plc and Toyota Motor Manufacturing UK Limited Toyota, Lexus Vauxhall Motors Limited Vauxhall Volvo Cars UK Limited Volvo Volkswagen Group (UK) Limited Audi, SEAT, Skoda, Volkswagen Passenger Cars, Volkswagen Commercial Vehicles * Not included in 2005 data. Perkins manufactures engines, Daimler Chrysler data represents UK sales, administration and logistics. Number of signatories has changed as a result of referring to groups not brands in 2006. 5 Vehicle production Vehicle use Vehicle disposal Production and real investment decline in Air quality improvements Car “take back” schemes in place 2006 Plant closures and re-assignments Vehicle safety improvements Data collection systems to be reviewed Employment in manufacturing declines CO2 product performance improves Overall environmental performance stable Total car CO2 emissions fall, despite increases in vehicle numbers and distance driven Waste disposal issues caused by regulatory change Integrated approach Technology Removing barriers to change Carbon price An approach to all three is required to reduce CO2 emissions from road transport. 6 2.0 Executive summary 7 2.0 Executive summary 2.1 Production and distribution The following section outlines the updated commitments developed in response to changes in our business and responsibili- ties. Performance of the sector in relation to the updated commitments is highlighted at the front of each section. •Green implies progress, orange static or too early to quantify and red, concern. 2002 2003 2004 2005 2006 Number of signatories (AS) 24 22 20 20 *17 This year two additional signatories (Daimler Chrysler, Perkins) were included into our report. * Please note that number of signatories has changed as a result of referring to groups not brands in 2006. 2.1.1 Vehicle production and distribution 2002 2003 2004 2005 2006 CHANGE 2006 ON 2005 Production inputs REPRESENTATION Total combined energy use (gwh) (AS) 6,681 6,126 5,337 5,103 4,851 -252 Energy used per vehicle produced (MW/h/unit) (VMS) 4.0 2.8 2.5 2.3 2.5 0.2 Total combined water use (000m3) (AS) 9,108 8,404 7,037 7,127 6,779 -348 Water use per vehicle produced (M3/unit) (VMS) 5.6 3.4 3.4 3.2 3.3 0.1 SUMMARY In the context of the whole industry the overall energy and water use continue to fall. The closure of the Ryton plant and production changes else- where have contributed to the loss of production volume, causing an increase in the per vehicle figure. COMMITMENT Control and reduce the environmental impact of company operations. FUTURE More efficient use of the resources, trends dependant on manufacturing production levels. 8 2.1.2 Material outputs 2002 2003 2004 2005 2006 CHANGE 2006 ON 2005 REPRESENTATION Total combined CO2 equivalents (tonnes) (AS) 2,142,706 1,679,832 1,447,900 1,417,129 1,363,189 -53,940 CO2 equivalents per vehicle produced (tonnes/unit) (VMS) 1.2 0.7 0.7 0.6 0.7 0.1 Total combined emissions of VOCs (tonnes) (AS) 6,240 7,337 5,480 6,478 5,041 -1,437 VOC emissions per vehicle produced (kg/unit) (VMS) 4.2 4.10 3.50 3.50 2.9 -0.6 Total combined waste to landfill (tonnes) (AS) 70,897 56,743 52,842 44,910 39,862 -5,048 Waste to landfill per vehicle produced (kg/unit) (VMS) 40.5 17.90 19.80 14.50 17.00 2.5 SUMMARY The overall material output was considerably lower last year. A slight increase in CO2 and waste to landfill per vehicle related to production de- crease, as well as plant closure. Change in the definition of waste paint sludge increased waste to landfill. COMMITMENT Improve our understanding of the impact of pre- and post- production logistics towards the environment. FUTURE Increased use of renewables and green energy, alongside aiming to achieve zero by-products from manufacturing. Availability, classification and cost of waste outlets will impact capability to move toward zero waste. 2.1.3 Economics and investment 2002 2003 2004 2005 2006 CHANGE 2006 ON 2005 REPRESENTATION Automotive manufacturing sector turnover (£ billion) 43.1 46.00 46.20 47.60 48.50 0.9 Total number of cars and CVs produced (UK) (WI) (million) 1.82 1.84 1.86 1.80 1.65 -0.2 Total new car registrations (UK) (AC) (million) 2.56 2.58 2.57 2.44 2.34 -0.1 Signatories’ combined turnover (£ billion) (AS) 35.70 39.16 34.64 39.38 41.87 2.5 Total number of vehicles produced (AS) (million) 1.44 1.73 1.61 1.77 1.90 0.1 SUMMARY Further decline in production and registration. Linked with plant closures and increased interest rates, resulting in decline in demand. Changes in model development reduces output in 2006. COMMITMENT Affirm economic growth, turnover and investment toward securing competitiveness in the global economy. FUTURE Concern over future investments to sustain UK production levels. 9 2.1.4 Employment and employees 2002 2003 2004 2005 2006 CHANGE 2006 ON 2005 REPRESENTATION Signatories' combined number of employees (AS) 89,455 87,625 76,327 72,337 75,789 3,452 Signatories' lost-time incidents (AS) 648 710 491 410 385 -25 Signatories' average number of training days (AS) 4.2 3.8 2.9 3.2 2.7 -0.5 Signatories' average staff turnover (%) (AS) 7.0 7.1 8.65 5.8 5.7 -0.1 SUMMARY Although the number of employees is up, this is due to inclusion of new signatories; like for like employment continues to fall. COMMITMENT Add value to employment capital through development, skills and training. Improve the working environment, health and safety of employees. FUTURE Cooperation with the government to ensure that a more skilled and satisfied workforce is in place. 2.2 Vehicle use 2002 2003 2004 2005 2006 CHANGE 2006 ON 2005 REPRESENTATION Average new car CO2 emimissions (g/km) (AC) 174.2 172.1 171.4 169.4 167.2 -2.2 SUMMARY In recent years, successful introduction of more environmentally friendly models into the market resulted in lowering national CO2 emissions from new registrations. Decline in total CO2 emission from cars. Significant improvements in safety and air quality emissions. COMMITMENT Improve fuel efficiency of new product design. Improve the safety of the product. FUTURE Providing consumers with a wide choice of safer, cleaner and affordable vehicles complying with higher emission standards. 10 2.3 End-of-life vehicles COMMITMENT Provide facilities for consumers to reduce vehicles for disposal at the end of life. Design and make cars so that at least 95 per cent of the weight of materials used can be recovered at the end of life. FUTURE To continue to design vehicles for recycling, to research recyclability of lightweight and composite vehicles and components together with an in- crease of total recycling levels. 2.4 Sector fact sheet 2002 2003 2004 2005 2006 CHANGE 2006 ON 2005 REPRESENTATION Automotive manufacturing sector turnover (WI) (£ billion) 44.6 46.0 46.2 47.6 48.5 0.9 Total net capital investment (WI) (£ billion) 1.3 1.2 1.1 1.3 1.4 0.1 Value of exports (WI) (£ billion) 20.9 21.9 22.5 23.7 24.5 0.8 UK sector share of global passenger car production (%) 3.9 3.9 3.7 3.5 3.4 -0.1 Number of cars and CVs produced (million) 1.8 1.9 1.86 1.8 1.7 -0.1 SUMMARY Motor manufacturers maintain their leading role as value producers and exporters in the UK economy.
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